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Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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Does Tier 2 call for employee contributions? If so, are those “picked up” by the employers? Remember that the Social Security benchmark is based on the employee paying FICA taxes. One suspects that some lawmakers DO know what the potential cost is and that they are intentionally vague about this because the unions and the judges in their pockets are trying to figure out how the “pick up” arrangements can continue without bankrupting the employers. Bankruptcy would also jeopardize Tier 1 which is itself seriously underfunded and the house of cards may not be able to withstand the added gravity.… Read more »
Math is very hard in Crook County.
Even da actuaries in Crook County are crooked.